Tax-Free Childcare costs

The prevailing economic climate and state of the business’  sector can affect company valuation for better or worse, as can your reasons  for selling. If you need a fast sale due to ill health, for instance, the  value may be lower than if a sale was taking place under more favourable  circumstances.

Valuing a business is a complex process and we can support you  throughout.

So, what are the most common methods of valuing a business?

Price to earnings ratio (P/E)

The price to earnings ratio uses multiples of profit, so may be  an appropriate valuation method if you own a well-established business with a  good track record of profits. ‘Price’ refers to the company’s current share  price, and ‘earnings’ to the earnings per share (EPS). The P/E ratio  indicates the business’s expected growth in earnings per share in the future.

Discounted cash flow

Discounted cash flow relies on estimating future cash flows for  the company, and a residual business value, and may be suited to businesses  with few assets.

Entry cost

Entry cost valuation involves calculating how much it would cost  to build your business to the stage that it’s reached now, including start up  and recruitment costs, marketing, and the value of assets. Any savings that  could have been made should then be deducted to arrive at the valuation.

Asset valuation

The asset valuation method may be suitable if your business is  well established and owns high levels of tangible assets. The Net Book Value  (NBV) of assets is calculated, and then adjusted to take account of external  factors such as depreciation and inflation.

Valuation based on industry

Some businesses are valued based on the industry in which they  operate. The retail industry is one such example, where the number of outlets  is an essential element for consideration. Industry ‘rules of thumb’ use  factors specific to an industry and can provide a more accurate calculation  in some cases.

Other considerations when valuing your business

Intangible assets are a key factor when valuing a business.  Intellectual property, goodwill, business reputation, and even a premium  business location, can all add considerable value in the eyes of potential  purchasers.

Spotlighting these intangible assets also allows you to improve  their value where appropriate – for example, registering ownership of a  trademark or patent, building up their reputation even further, or improving  the condition of premises.

Please talk to us about valuing your business as this can lead  to a range of important considerations and actions. Click the Calendly  appointment link near the bottom to talk with Andrew Wilson

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Self-Assessment – less than 90 days to go!

There are less than 90 days to go until the deadline for filing  your Self-Assessment return online. You can see our countdown timer and blog  on the subject on our web page here

You need to file your return by 31 January 2024. Filing  your return early is always an option and it means that you can find out how  much you owe which will help you budget and plan for your payment. If you are  due a refund, you can claim it back sooner too.

If you’ve already sent HMRC your return and paid, you don’t need  to do anything else. 

If you think you are no longer required to complete a  Self-Assessment return, you can 'Check if you need to send a  Self-Assessment tax return'.

If you no longer need to complete a Self-Assessment return, tell  HMRC at, 'If you no longer need to send a tax  return' or find more help on their YouTube channel.

If you need assistance in completing your tax return please  contact us ahead of the deadline and we will do our best to make sure it’s  accurate and filed on time.

Tax-Free Childcare costs

HM Revenue and Customs (HMRC) is reminding working  families to give their childcare budget a boost by opening a Tax-Free  Childcare account.

Parents can use Tax-Free Childcare to help with childcare costs  for school holiday clubs, breakfast or after school clubs, childminders or  nurseries.

You can get up to £500 every 3 months (up to £2,000 a year) for  each of your children to help with the costs of childcare. This goes up to  £1,000 every 3 months if a child is disabled (up to £4,000 a year).

If you get Tax-Free Childcare, you will have to set up an online  childcare account for your child. For every £8 you pay into this account, the  government will pay in £2 to use to pay your provider.

You can get Tax-Free Childcare at the same time as 30 hours free  childcare if you’re eligible for both.

You can use it to pay for approved childcare, for  example:

 
• childminders,       nurseries and nannies; and
 
• after       school clubs and play schemes.
 

Your childcare provider must be signed up to the scheme before  you can pay them and benefit from Tax-Free Childcare. Check with your  provider to see if they’re signed up.

If your child is disabled

You can use the extra Tax-Free Childcare money you get to help  pay for extra hours of childcare. You can also use it to help pay your  childcare provider so they can get specialist equipment for your child, such  as mobility aids. Talk to them about what equipment your child can get.

See: Save up to £2,000 a year on  childcare costs for your little pumpkins - GOV.UK (www.gov.uk)

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HMRC Employer Bulletin: October 2023

HMRC publishes the Employer Bulletin 6 times a year, giving  employers the latest information on topics and issues that may affect them.

The October edition of Employer Bulletin includes articles on:

 
• electric       charging of company cars and vans at residential properties;
 
• paying       your PAYE Settlement Agreement;
 
• reporting       PAYE information in real time when payments are made early at Christmas;
 
• Overlap       Relief — preparing for the new tax year basis; and
 
• ‘pay       by bank account’ enhancements.
 

You can register for HMRC’s employer email alert  service to receive emails from HMRC which tell you when the latest issue  is available.

You can read the bulletin on screen or print it off. It’s  compatible with most screen reading software packages.

See: Employer Bulletin: October 2023 -  GOV.UK (www.gov.uk)

How can digital marketing help your business?

There are numerous benefits to businesses, enabling you to  thrive in the digital age and stay ahead of the competition. Let's explore  some of the ways digital marketing can help you.

Cost-Effective Marketing: Compared to traditional  marketing methods, digital marketing is often more cost-effective. Online  advertising, email, and content marketing campaigns can be tailored to fit  various budgets, making it accessible for businesses of all sizes.

Content Marketing: Creating valuable content  such as blog posts, eBooks, and webinars can establish you as the expert in  your field.

Enhanced Online Visibility: Strategies such as  search engine optimisation (SEO) and pay-per-click advertising (PPC) can  improve your online visibility.

Targeted Marketing: You can target specific  demographics and audiences. Through techniques like audience segmentation,  you can tailor your marketing efforts to reach the most relevant prospects,  ensuring your messages resonate with the right people.

Lead Generation: You may be able to create  free content such as guides and landing pages. Email capture forms can help  capture contact information from interested prospects.

Customer Engagement: Social media platforms and  email marketing enable accounting firms to engage with existing clients and  keep them informed about important updates, changes in tax laws, and new  services.

Data Analytics: Viewing the data and  results on any activity allows for continuous improvement and refinement of  marketing strategies. Using tools such as Google Analytics can help you  measure the effectiveness of marketing campaigns, track website traffic, and  gather insights.

Competitive Advantage: If you embrace the digital  landscape, you're more likely to stay relevant and attract tech-savvy clients  (and staff).

Setting the right goals is crucial for success!

Goals should be specific, measurable, achievable, relevant, and  time-bound (SMART). Consider objectives like increasing website traffic,  generating a certain number of leads, or growing your social media following.  Your goals should be aligned with your business’s overall objectives and  customer needs. Regularly track and analyse your progress using key  performance indicators (KPIs) to make data-driven adjustments.

Our most profitable clients spend time on their marketing  strategy. If you haven’t got a marketing plan, please ask us for a template!

Can you lower your energy bills this winter?

The UK Government have updated their ‘Help for Households‘  website for 2023.

Find out what actions you can take to get ready for winter and  save money on your energy bills by reading their ‘It All Adds Up’  campaign.

The latest cost-of-living instalment of £300 is currently being  paid to low-income households across the UK, without the need to make a  claim.

Warm Home Discount Scheme

You could get £150 off your electricity bill for winter 2023 to  2024 under the Warm Home Discount Scheme. The money is not paid to you - it’s  a one-off discount applied to your electricity bill between early October  2023 and 31 March 2024.

Find out if you’re eligible for Warm Home Discount Scheme: Overview  - GOV.UK (www.gov.uk)

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